Why these five travel stocks are flying high

Summary

  • Travel from the UK will become quarantine-free from 19 July onwards for the fully vaccinated people.
  • After the announcement, amber list destinations bookings for holidays increased by almost 400%.

UK government has announced that from 19 July onwards, travel from the UK will become quarantine-free. Followed by which amber list destinations bookings for holidays increased by almost 400%, clearly showing that people want to travel again within the guidelines.

As per the announcement by Transport Secretary Grant Shapps, anyone who has been jabbed twice with the coronavirus vaccine or is under the age of 18 will no longer need to self-isolate themselves for ten days on their return from amber list countries.

Copyright © 2021 Kalkine Media

However, passengers are still required to carry a COVID-19 test of three days before arriving back in the UK, and a PCR swab test the day after they land.

Let us look at 5 LSE listed players from the travel and tourism sector reacting to the positive announcement.

International Consolidated Airlines Group SA (LON: IAG)

An Anglo-Spanish multinational airline IAG is the owner of British Airways and a constituent of FTSE100. The company owns 533 aircraft and has a passenger flow of 118m+.

For the first quarter ending 31 March 2021, Passenger capacity reported was only 19.6% of 2019 on account of coronavirus pandemic. However, in this quarter, 1306 cargo-only flights operated compared to 969 in the last quarter. The operating loss for the quarter ending 31 March 2021 reduced to €1,068 million compared to €1,860 million three months ago.

The shares of IAG were up 1.65% and were trading at GBX 184.36 on 9 July at 11:44 GMT+1. In the last one-year, stock has delivered a return of around 27% and holds the market capitalisation of £8996.85 million.

Wizz Air Holdings PLC (LON: WIZZ)

Headquarters in Budapest, Wizz Air, is a low-cost airline that mainly operates in Europe, the Middle East, and North Africa.

During FY21, the airline carried ten million passengers, a fall of 75% compared to the previous year. As per the 12 months results ending 31 March 2021, group’s revenue fell by 73% to stand at €739 million compared to €2,761.3 million a year ago.

The shares of Wizz were up 1.02% and were trading at GBX 4748 on 9 July at 12:24 GMT+1. In the last one-year, stock has delivered a return of around 47% and holds the market capitalisation of £4842.26 million.

TUI AG (LON: TUI)

An FTSE250 constituent, TUI is a Germany based tourism group that owns 150 aircraft and 1600 travel agencies. Tui AG is the largest leisure, tourism, and travel company worldwide.

For the half-year ending 31 March 2021, the group reported revenue of €716.3 million, down by 89% due to coronavirus restrictions. For the period, Group’s underlying EBIT loss reported was of €1,309 million.

The shares of TUI were up 0.11% and were trading at GBX 362.20 on 9 July at 12:09 GMT+1. In the last one-year stock has delivered a return of around 58% and holds the market capitalisation of £3977.61 million.

EasyJet (LON: EZJ)

EasyJet is a low-cost European point-to-point airline company. With the operational efficiencies, company deliver low fare. The company is well-prepared for the unwinding of travel restrictions and expected demand.

The company reported a slump in passenger numbers for the six months ending 31 March 2021 to 4.1 million, a decrease of 89.4% compared to 38.6 million six months ago. Total revenue of the company fell by 90% to £240 million compared to £2,382 million in H1 2020.

The shares of EZJ were up 2.23% and were trading at GBX 937.40 on 9 July at 12:39 GMT+1. In the last one-year, stock has delivered a return of around 43% and holds the market capitalisation of £4188.39 million.

Jet2 PLC (LON: JET2)

Headquartered in Leeds, the company operates two leisure travel brands: Jet2.com and Jet2holidays. The company’s main objective is to expand its business through organic growth and acquire businesses with future growth potential.

As per the final full-year result ending 31 March 2021, the group reported a loss before FX revaluation and taxation of £373.8 million compared to a profit of £264.2 million a year ago. The company recorded 1% fall in a total cash balance to £1,379 million compared to a year ago.

The shares of JET2 were up 3.74% and were trading at GBX 1221 on 9 July at 12:54 GMT+1. In the last one-year, stock has delivered a return of around 60% and holds the market capitalisation of £2525.39 million.

Comment


Disclaimer